Ericsson, Nokia secure key 5G contracts in China

18 Jun 2019 2049 | Business & Trade Fairs

European telecom equipment makers Ericsson and Nokia obtained key 5G contracts in China on Sunday, a move that analysts said showcases the country's open attitude to all international players when rolling out the superfast technology.

The news came after China Mobile, the world's largest telecom operator by mobile subscribers, announced it has awarded its first round of 5G network equipment contracts worth around $2 billion.

China Mobile procured 153 units of Mobility Management Entity telecom equipment from Swedish company Ericsson, which account for 34 per cent of the company's procurements. Nokia provided 56 units, accounting for 12 per cent.

When it comes to System Architecture Evolution telecom equipment, Ericsson provided 231 units, accounting for 34 per cent of China Mobile's business, with Nokia offering 60 units, equivalent to around nine per cent of the overall procurements.

The move comes as China Mobile accelerates steps to construct the fifth-generation wireless technology shortly after it won a 5G commercial licence. The company aims to offer 5G commercial services in 40 cities by September.

The significant share of Ericsson and Nokia in China Mobile's procurement plans highlights that China delivers its promises of sticking to international cooperation, analysts said.

The Ministry of Industry and Information Technology, China's top telecom industry regulator, earlier this month said it welcomes foreign enterprises to actively participate in China's 5G network construction and application promotion.

Nokia China president Markus Borchert said in a reply to China Daily: "The cooperation with multi-national companies is highly recognised by the Chinese government, which makes us more confident in the healthy, steady and sustainable development of China's 5G industry."

His comments were echoed by Lv Tingjie, a professor at the Beijing University of Posts and Telecommunications. Lv said China welcomes competition in 5G rollout, for it knows well that competition from foreign companies helps lower costs.

"That contrasts the attitude of the US government, which banned Chinese companies from its 5G network deployment," Lv said, adding that China's sprawling multi-billion telecom market will bring big opportunities to foreign companies.